Indian Prime Minister Narendra Modi promised on Tuesday to strengthen Vietnam's military following talks between leaders of the two allies, in a move likely to rankle neighbouring nuclear-armed giant China. Modi said India would sell naval patrol boats to Vietnam under a $100 million line of credit to the Southeast Asian nation, which is trying to improve its defences in the disputed South China Sea.
Modi held talks in New Delhi with Prime Minister Nguyen Tan Dung, who is on a two-day visit to India, as Hanoi courts powerful allies following soured relations with China over the disputed sea territory. Modi, who swept to power in May, said the two leaders had agreed to strengthen relations, adding "our defence co-operation with Vietnam is among our most important ones". "India remains committed to the modernisation of Vietnam's defence and security forces."
The leaders also called for "restraint" and "freedom of navigation" in the South China Sea, where China is embroiled in a bitter dispute with Vietnam and other nations. "They agreed that freedom of navigation and overflight in the East Sea/South China Sea should not be impeded," said a joint statement after the talks. "The (leaders called on the) parties concerned to exercise restraint, avoid threat or use of force and resolve disputes through peaceful means in accordance with universally recognised principles of international law."
In May Beijing moved a deep-water oil rig into waters claimed by Hanoi, prompting a months-long high-seas stand-off and triggering deadly anti-China riots in Vietnam. The rig was removed in July. Modi and Dung also welcomed the signing earlier Tuesday of an agreement of oil and gas projects between India's state-run oil exploration arm ONGC Videsh Limited and PetroVietnam.